Write-off Your Mom: A Sweet Mother's Day Gift

Okay, everybody, now I am serious. Okay, everybody, I'm serious about this. I know this is, you know, you see the title right off your mom, but this is, this is legit. I want your mom to be on the board of directors or board of advisors of your small business. This weekend could be the weekend to visit mom for Mother's Day. Take a tax write off for your travel to go visit mom and talk business. Oh my gosh, I've got so much to tell you. So don't go anywhere. Grab a pad of paper and if you have a side hustle or a small business or consulting business, service based, Internet based business, doing anything in the metaverse, I don't care what it is, your mom needs to be a part of your business because you love your mom. I know one out of a hundred, maybe you have a hard situation with your mom, but I'm going to just hope all of you watching right now love your mom and you need to tax write off. Heck, you could even buy a rental property by your mom and have her go, you know, kick out renters and collect rent. She'd love that. Okay. It's kind of a joke, but okay. So here's the deal. We're gonna have fun with this. Point number one, if you have a small business, you need a board of advisors. Even if you're just a sole proprietorship. Just a little side hustle, you're driving Uber. You're like delivering, you know, food. And I don't want to name too many names and get in trouble. I'm not sponsored by anyone here. But you're, you're, you're out there delivering, you're driving Uber. And, and all of a sudden you're like, I need some advice. I better call my mom. Okay, she's on your board, she's on your board of advisors. And you may need to travel to see your mom on the holidays. And that's a legitimate tax write off. I want you to take some notes. And on a serious note, everybody, your mom's. Now I'm going to get serious. I'm sitting right here in the Centurion Lounge in Denver, en route to go see my mom this weekend for Mother's Day. And I'm going to be in Nashville tomorrow night for an NFT meetup. Stoked on that. But from there, I'm driving, I'm flying straight to my mom's. And here's the important point. Your mom has a bunch of wisdom. She has a bunch of advice she wants to give you. Now maybe some of it you don't want to hear. Maybe some of it's a little crazy. I know moms sometimes. But hopefully your mom loves you and she cares for you and it would mean the world to her that you say, hey, mom, I got a small business, I got a side hustle. Would you be on my board of advisors? My board of directors. I'll get more specific on how to do this, but think about it. How cool would it be on Mother's Day to say, mom, I'd like to ask you to be on my board? I could really use your advice. You got a lot of life experience. I need you to pass that on to me. Man, I just got choked up saying that. So here's how easy it is. If you have a sole proprietorship, no llc, no corporation, that's cool. You pull out a piece of paper. I'm having a board of advisors meeting. I appoint my mom, I appoint my brother, I appoint my sister, my spouse, my teenagers. Putting a teenager on your board is awesome because they know everything. They'll tell you that too. But you get your board and you say, we're gonna have a meeting. And you, and you can do it on zoom. You can go in person and you're going to talk about your business, your five year plan, your ten year plan. I got, I got my plan with me here, my calendar. I'm still writing my plans out for this. Sorry. I get excited on a plane because I'd love to get above the earth and just like think about my plans. And I just write. So anyway, if you have an llc, it's called the board of advisors and it should be in your LLC operating agreement that you can have a board. We and every LLC we set up at our law firm, we help people get the right operating agreements. You can say, I'm going to have a board of advisors and you just have a meeting. They don't, they're not owners. You don't have to pay them. You can, you might be compensating your teens or your mom, or you're helping your parents out financially. You can give them a 1099 for helping them because they're a part of your board. So now you get a write off for helping mom. That's the write off. Write off your mom when you help her financially and she's going to be in a lower tax bracket or no tax bracket, maybe help her pay her taxes, she's going to be a lower back. Quit paying taxes and giving your mom money. Put her on the board, pay her for her Wonderful advice. Take a tax write off and if mom owes a little bit more in taxes, gift it to her. Awesome. Cool. Cool. Killer. Love it. It's so such a good idea. Now, if you have a corporation, you're going to do a board of directors. Now, in the bylaws of your corporation, every freaking corporation on the planet should have a board of directors. Bylaws that allow for a board of directors. And so you're going to set up a board of directors just like the same way I'm going to have a meeting every year. Again, they don't have any liability in your little small business. It's not like they're on the board of, you know, some Fortune 500 1000. And you're going to have a meeting on a regular basis. So this Mother's Day, when you travel to go see mom, you can take a travel write off to go see her and write off your airfare. Maybe you're staying in a hotel because mom has cats and you hate cats. You're allergic to cats. You're like, I don't want to sleep with cats. So you're going to stay, you know, at the Hampton Inn down the street. You know, a little distance there might be nice. You know, when mom starts to melt down after making, you know, Sunday lunch because you're going to screw it up and so she's going to end up making lunch on Mother's Day anyway. Don't let her do that. So you may stay down the street so you can write off your hotel. You write my right off Uber, because you're like, mom, don't come to the airport. I'll just get a. I'll get a taxi or an Uber. So you're going to take care of your mom on Mother's Day and you're going to have a board meeting and go, mom, I need some advice and think of some questions. You know, how you could maybe do better in sales or organization or time management. And ask your mom what did when she was your age. And it could be a really incredible bonding experience. Now, there's some other incredible ideas here too, you could add to the mix. And I was kind of joking about rental properties, but buy rentals where your mom lives. Now, if your mom doesn't live in a totally expensive area where rentals don't make sense, I get it. But if you could buy storage units, commercial property, farmland, a good old single family home duplex, Airbnb, buy rental property where you go. Mom's now on the board and can help out with this. All right, now I'm going to look at a, see if some of these questions that are coming up here in the chat I can answer. If not, we're going to keep moving along here. Someone was saying, mark, I'm trying to get you guys and work with your company. If you're calling the law firm, call 888-801-0010 and I'll just type that in there. That's our phone number to the law firm. And you can get an appointment with a lawyer right away, a tax lawyer to put together a plan for the year. We have our estate planning special coming up. But if it's the accounting firm, we're swamped. We're already through April 15, but we have somewhat of a waiting list. So if you're having a hard time hiring the accounting firm, just realize we can still do a tax plan and a strategy in the law firm side and get you in the pipe in the pipeline for the accounting firm now. Okay, let's get back to our strategies here. Hire mom and on your board of directors have a rental property where mom lives. So every time you go visit the rental, you're getting a tax write off to go see mom, which is an awesome write off. Mom might help with the bookkeeping. Mom might help with screening tenants. You don't want her meeting tenants. That would be very terrible of you to make your mom go see a tenant. But get, get mom involved in the business and do have to have an LLC from Jeremy. He says you have to have an LLC in the state where your mom is. No, but if you buy a rental where mom lives. Yes. Now let me repeat that. My mom lives in. I'll be a little more discreet here. So let's say my mom lives in Wisconsin. So if she's on my board, I don't have to register my company in Wisconsin. If I have a rental property in Arizona, I have to register my LLC in Arizona because I want protection in the laws of the state of Arizona. And you would say, well, what about Wyoming or Nevada and all that? That's just crap. I've got articles and up the yin yang on that. That's a different asset protection strategy. You're going to have your rental property, you're gonna have your LLC where your rental property is. But where mom is doesn't matter. She can still be on your board. Can you write off mom if with international travel, absolutely. You can have a board of directors with non US citizens on your board. Don't you think big corporations do that? All the time. Absolutely. So if your mom lives in Puerto Rico and you're going to fly down to Puerto Rico once a year to go see your mom and talk business, I'm going to want you to take a write off for a good chunk of that trip. Now, you can't write off 10 days having meetings every day. That's not going to work. Right. But we're going to find a reasonable amount. And the more you're making in your business, the more moms involved, the more the write off can be. Okay, now let's talk about some other cool ways for some write offs here. If your mom is on the board, then you might need to have some business training with her and have some fun experiences with her. So I'm doing a special this weekend, our crypto tax summit in Miami in two weeks. You buy a ticket, your mom gets her ticket, half off. That's a special to run it. It's right now available@cryptotaxsummit.com so on mother's Day, say, mom, we're have a board meeting and I want to take you to Miami in two weeks and we're going to talk about cryptocurrency and NFTs and the metaverse, and we're going to learn together how to invest together. And let's invest some of your IRA in some cryptocurrency. Maybe your mom's like, we can go learn together. Yes, let's go. Let's go to Miami. The hotel is beautiful. There's a shuttle straight from the airport to the Pullman Hotel right at the airport. Miami Airport. It's going to be gorgeous. Two days. The most tax and legal training cryptocurrency conference ever is going to be in two weeks. So go to crypto summit, sorry, cryptotaxsummit.com and two people in the shopping cart. The second one gets half off. Now, this is for your mom, not your sugar mama. Now, I mean, you might say, you know, don't tell me it's not for your mom, but I'm going to just trust you. So that second ticket is half off. Use it as you may, maybe take your dad if he's feeling left out, too, but two tickets, second one's half off. All right, now a couple of questions here. I should have my glasses on. If you use Air Force points to buy a plane ticket, can you write off the full cost? If I paid with money. Okay, so that kind of conflicted. You said I have air fare points, but then do I have to pay full cost or whatever? Let Me, say it this way. Whenever you redeem Miles, that's not a write off. Now, the IRS has been fighting that for years. That's really cool. You don't have to. You don't get a write off. You don't have to claim Miles's income. So what I do, this trip is for business. So I'm writing that off and paying for it. Now, if I'm going to go to Mexico on a vacation or I'm going to go to Hawaii and no business, that's when you redeem miles. Redeem miles. When it's personal travel, pay the dollars. When it's business travel, get the write off, redeem miles for free. All right. Okay. Now the next thing you might want to do is mom may need an estate plan. An estate plan is important for everybody, young or old, kids or no kids, married or single, rich or poor. An estate plan includes your will, your trust, powers of attorney. If you call your mom and go, mommy, have an estate plan, she goes, no. Oh, my gosh. Let's get you one set up in two weeks. We start our estate planning special. 20% off. 15%. Something like 15 or 20% off. We do it every year. We're doing it for 10 years. So@kkoslawyers.com you can sign up for an estate plan. And are you going to pay for an estate plan for Mom? Oh, no, no, no, no. You're going to pay mom for being on your board, and you're going to pay for her estate plan as compensation to her. Now, you just got a write off for paying for an estate plan for mom. And who's the beneficiary of her will and trust? You are. So you're doing yourself a big favor here, getting her crap organized. You're getting a tax write off because you're getting a 1099. End of the year. Now, here's the cool thing. Whenever you pay mom helping in your business or to buy her an estate plan or go to Miami for the summit, you get a tax write off. And if you for any of the travel and all that, because she's part of your business now, on your board. But if you give her money or you pay for an estate plan, you give her a 1099, she'll file a schedule C, as in Charlie, because she now has a small business. She has a 1099. Now she can write off her home computer, her cell phone, because she might get a call from you because she serves on your board of directors. So many cool strategies here because you just Gave mom a side hustle. Is this freaking awesome? Actually, I love it. Okay, all right, let's see another question here by me, Ron. I've already planned to do a S corp with other business. Someone told me I have my wife. Okay, now me, Ron says, mark, I'm going to set up an S corp for my IT consulting business. And someone told me to put my wife as a 51% owner to save more in tax. Bullshit. Sorry. Had a cough. Bullshit. Sorry. Okay. No, you're not going to save more in taxes by making your husband 51% owner. Your wife more 51% owner. It does not help set up your S corp. And I've got videos on why using an S corp and how to use an S corporation. But making your husband or wife a 51% owner is not going to help. The only time having a woman owned business may help is in government contract acquisitions at the state, local or federal level. So if you're going to be making doing applications for federal, state or local contracts where a female owned business helps you, that's when you might make your spouse, your wife an owner of your business. I don't know what that had to do with moms. Is this your sugar mom? Okay, just make sure. All right. This is your Mother's day special. Okay. It's Marty from Ozark is based on you. That was genius. Well, thank you. Marty in Ozark is pretty dark. But for those of you doing tax planning, you know, it's funny now on this note, it was so funny last night with my daughter Molly and Elliot. We were playing Rummy Cube and we were watching Date Night with Steve Carell and oh my gosh, I just forgot her name. Anyway, someone can help me out here. But in, in that movie Date Night, he's a tax attorney and it's so funny. He tells these people, you get in 600 refund. They're like, we're going to Spain. I don't know where they're getting Going to Spain on 600. Tina Fate. It was Tina Fey. So Tina Fey. And Steve Carell. He's a tax lawyer. I forgot it. And we were watching the show and he's like, you're not going to Spain. How about we open a Roth ira? Okay. Which brings me to my next strategy. Help your mom fund her Roth ira, of which you're a beneficiary. Guys, this is genius. I just got chills saying this. Help your mom open a Roth ira, you're the beneficiary. When you inherit that Roth ira, it is immediately Tax deductible withdrawals. You don't have to wait till you're 59 and a half for 10 years. You can use it as a tax free ATM. Keep investing it in real estate, crypto, stock, bonds, mutual funds, ETFs. Pay your mom for being on the board of directors and tell your mom you're going to fund her Roth ira. With the payment you're going to pay her. You're getting a tax write off to pay your mom to fund a Roth IRA of which you're going to be a beneficiary. Glass drop. Did you catch that? Get your mom a Roth IRA and get a tax write off by paying her to fund it. You're the beneficiary. Love it. Someone says Kimberly says Mark. Is an estate plan different than a revocable living trust? No, a revocable living trust is part of an estate plan. An estate plan is a binder with a will trust, powers of attorney. Pull the plug if I'm a vegetable. If you're having a hard time finding someone to pull the plug, usually an ex wife or ex husband, they'll come in and pull the plug for you. They'll usually back from 20ft away, they'll wrap up the cord and boom, they're done. They don't mind. It's really. They really enjoy it. So you can appoint your ex to be the plug puller. They like that. Okay. But that's all part of an estate plan. Do you have to 1099 contractors that work on my rent tools? Yes. Ryan Lee asked, do you have to 1099 contractors that work on your rentals? Thanks Nancy, for the laugh. Yes. Now I have an article on when to issue a 1099. Just try Kohler 1099 in Google. It's the number one article on 1099. It blew up in January. So just get to my article on 1099 and I give you links and everything on how to pay your subcontractors. Dan says someone filed a fraudulent tax return for me. My actual one was extended. What's the process for getting that remedied? CPA is working on it. I don't know about that. That's a tricky one. And Dan, I know a Dan Hunter. I wonder if that's the same Dan Hunter I know. If it is Dan, go ahead and email me markjkohler.com and I will reply to that. That's a big question. So. All right. I recently got a day trading this year and realized, okay, one more question and then we'll get Back to moms and wrap this up. I recent. This is from animed bz20. I recently got day trading this year and realized 60 grand in short term capital gains. Okay, so they went into day trading this year. So I'm assuming that's 2022. How do I handle the taxes? Should I increase employer with W2 withholding or pay direct to IRS? Or wait until 2022 taxes? Probably the most prudent thing to do. For any of you that are having gains in public and trading stocks, ETFs or crypto, take about 20% of your gains and just make a deposit with the IRS. It's called a 1048 ES as an estimated ES. You can download forms for that. You can do them anytime. Go to your account and say I need to make a tax deposit. And a 1040s form is very common. And so just calculate some withholdings as you make your money. Don't fiddle around with your W2 at work. Doesn't make. It doesn't make sense. And wait until the end of the year if you want to set aside the money. That's cool. But don't get caught off guard and get jacked up that I would not want that. 51:6 says certification test is after the summit. Now everybody. What's fun about the Crypto Tax Summit is I have created the one and only, the only one that exists. I've searched all over the web, crypto taxation, certification. It's over 75 questions. I'm going to make sure it's 100 questions by the event in two weeks. And some of them are really easy, some are a little harder. You have to get a 90%. You can take the test as many times as you want. It comes in a cool plaque with a disc, 1985 disc. And, and it's super cool. It's a hundred bucks to take the exam. You can take the exam as many times as you want. I already said that. But a lot of CPAs and enrolled agents are taking the exam saying, hey, this is cool. All right, I'm going to take this exam and, and make sure I'm. I know all I want. Anybody that's preparing tax returns, you better be able to pass that test. And any of you that are trading crypto big time, you should be able to do that. So it's. If you come as a VIP at the Crypto Tax Summit, bring your mom, make her a vip. We have a welcome reception on Wednesday night. Open bar by the pool. We have a breakfast on Friday morning. Special speaker buffet breakfast, VIPs and extra swag and you get to take the exam for free. It's included with your ticket. So look at those options. If you come with the gold ticket and you want to do the certification, it's 100 bucks. You can do it anytime. Jeremy Collins says Please Mark, go up and look at my question. Okay, he says, I have a name that can be used for multiple businesses. However, should I set up an LLC for each business? Example, ABC Properties, ABC Lawn Services, ABC Auto Detailing. Thanks Jeremy for the reminder to ask a question. Love it. You should not set up three LLCs. Set up one LLC called Jeremy ABC Enterprises and then do DBAs or trademarks and reserve the name at the state or local level and just have multiple DBAs for your different businesses going into one LLC. Don't, don't do multiple LLCs. I would never do that, especially on a service based business which you're talking about. Jeremy, I have 1s corp in my life. That's all I want is 1s corporation. So with 1s corporation we can make sure everything's going into one spot, one tax return. It's simple, it's easy. And just do DBAs. Now if you have partners in those other businesses, we might have LLCs that flow into your S Corp for your share of the ownership. Or you might set up Single Member LLCs if they have a specific reason for asset protection or an exit strategy. But I always want to start with one entity and see if you can do DBAs. Miran says thank you. Mark is visiting my mom in India a write off for my S Corp? It can be. Now, I don't want to say going all the way to India to have a board meeting is a write off, but it can be. I want to make sure it's legitimate. You know, what did you and your mom talk about? Were you able to attend a conference there with your mom? I can't write off the five days, five weeks, but maybe the airfare to go over there and meet with her and the airfare to come back and then you may stay with her and I may not write off food or hotel, but the airfare to go visit a board member that's legitimately helping you with your business. I'm cool with that. All right, so summary, your family should be involved in your business. Even if you're single, you hopefully still have a mom, dad, a brother or sister, a niece or nephew. And if they're helping you in the business and you're helping them at all financially, make sure you're paying them out of your business. Don't pay taxes and then give them money. Do it above the line. So think about being very, very careful about paying taxes at your bracket when your family could be involved in your business. And Mother's Day is a great time to have a heart to heart with your mom. Tell her how much you love her. Put her on the board. Ask her some great questions. Great advice. Write off your travel. When you ever go see your mom? Within reason. The more money you're making your business, the more they're involved, the more I can write off. There's a balancing act and it's not a scam. I want your mom involved. I wasn't scratching my ears. That would have been really gross to put my finger in my hair. But having your family members in your business is a great strategy. Thanks so much for watching. Get over to Crypto Tax Summit. Know that at KQS Lawyers. I think I put the website in there. WW kkoslawyers.com is where you can talk to any of the team members. Get signed up for an estate plan. Pay your mom on the board to get her estate plan and do some planning there. Set up a Roth ira. Look at your rental properties around mom. Get her involved in the board. Thanks everybody and travel this weekend safely and make sure to call your mom. At the very least could be a tax write off call maybe with your cell phone. We'll figure out see it.